Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.22.1
Warrants
3 Months Ended
Mar. 31, 2022
Warrants.  
Warrants

13. Warrants

In January 2021, in connection with a Business Development Agreement entered into with Finback Evolv II, LLC (“Finback BDA”), the Company issued a warrant to Finback for the purchase of 2,552,913 shares of common stock at an exercise price of $0.42 per share. The 2021 Finback common stock warrants vest upon meeting certain sales criteria as defined in the agreement and expires in January 2031. The warrants will be accounted for under ASC 718 Compensation – Stock Compensation as the warrants will vest upon certain performance conditions being met (see Note 16).

In connection with the closing of the Merger, the Company assumed the Public Warrants for the purchase of 14,325,000 shares of common stock at an exercise price of $11.50. The Public Warrants are immediately exercisable and expire in July 2026. The Public Warrants are classified as a liability and were recorded at its fair value of $23.6 million

on the date of the closing of the Merger with an offset to additional paid-in-capital and is subsequently remeasured to fair value at each reporting date based on the publicly available trading price. The change in fair value of the public warrant liability of $5.6 million and $0 was recognized as a component of other income (expense), net in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, none of the vested 2021 Finback common stock warrants were exercised.

As of March 31, 2022 and December 31, 2021, warrants to purchase the following class of Common stock outstanding consisted of the following in the tables below:

March 31, 2022

Contractual

Shares Issuable

Weighted

Term

Underlying Equity

Balance Sheet

Upon Exercise

Average

Issuance Date

    

(in years)

    

Instrument

    

Classification

    

of Warrant

    

Exercise Price

January 13, 2021

 

10

 

Common stock

 

Equity

 

2,552,913

$

0.42

July 16, 2021

 

5

 

Common stock

 

Liability

 

14,324,993

$

11.50

 

  

 

  

 

16,877,906

 

  

December 31, 2021

Contractual

Shares Issuable

Weighted

Term

Underlying Equity

Balance Sheet

Upon Exercise of

Average

Issuance Date

    

(in years)

    

Instrument

    

Classification

    

Warrant

    

Exercise Price

January 13, 2021

 

10

 

Common stock

 

Equity

 

2,552,913

$

0.42

July 16, 2021

 

5

 

Common stock

 

Liability

 

14,324,994

$

11.50

 

  

 

  

 

16,877,907